Salary Tax

Salary (or payroll) tax is paid by certain employers established in France and calculated based on salaries paid to employees over the course of the year.

The tax is typically required by employers domiciled or established in France who are not subject to VAT on their turnover in the year where they pay the employee(s).

The tax will apply to:

Banking and financial institutions;
Administrative and social organisations;
Landowners;
Agricultural professions;
Remote workers carrying out financial activity in France on behalf of a foreign employer.

Exemptions include:

Higher educational institutions;
Remote workers carrying out non-commercial work for a parent employer (e.g. IT or bookkeeping work);
Certain public institutions;
Employers of home employees such as carers for example.

This is just a broad overview but for a more in-depth analysis of your situation and the level of tax involved, especially for foreign employers, please don’t hesitate to get in touch. We’d be happy to help.